U.S. Persons Barred from Dealings with Entities on New Foreign Sanctions Evaders List

Friday, February 07, 2014

Sandler, Travis & Rosenberg Trade Report

The Treasury Department’s Office of Foreign Assets Control introduced Feb. 6 another list of restricted entities that U.S. companies should consult before engaging in international commerce. The Foreign Sanctions Evaders List identifies foreign individuals and entities determined to have (a) violated, attempted to violate, conspired to violate or caused a violation of U.S. economic and financial sanctions on Syria or Iran or (b) facilitated deceptive transactions for or on behalf of persons subject to such sanctions.

Those on the FSE list are essentially cut off from the U.S. commercial and financial systems. U.S. persons are generally prohibited from all transactions or dealings, whether direct or indirect, involving persons identified on this list in or related to any goods, services or technology (1) in or intended for the U.S. or (2) provided by or to U.S. persons, wherever located. As a result, transactions by U.S. persons or through the U.S. are prohibited if they involve the provision or procurement of goods or services, including financial services, or technology to or from a person on the FSE list without authorization from OFAC, unless the transaction is otherwise exempt from regulation under the International Emergency Economic Powers Act (e.g., certain travel-related transactions).

OFAC states that there is no predetermined timetable for when the FSE list will be updated and that names and other information will be added and removed as necessary and appropriate. OFAC adds that the FSE list is not part of the specially designated nationals list but that individuals and companies on the former may also appear on the latter.